Video Case: Strategy At Regal Marine

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VIDEO CASE: STRATEGY AT REGAL MARINE This video case examines the operations strategy at Regal Marine, one of the US’s largest manufacturers of powerboats. We suggest you follow these 4 steps: 1. Read the case study that follows. 2. View the video tour of Regal and its strategy decisions, then view the video clip containing the authors’ observations. 3. If you wish to have further background, reread the material on strategy in Chapter 2. 4. Answer the questions about the case, and if your instructor wishes, email your answers to him or her. Chapter 2 deals with operations management strategy. Strategy is the action plan to achieve a company’s mission. The firm’s mission is then supported by each activity. Each activity, including the production activity has a strategy for achieving its mission and for helping the organization reach the overall mission. These strategies exploit opportunities and strengths, neutralize threats, and avoid weaknesses. In this case we explore how strategies are developed and implemented at Regal Marine. Firms achieve missions in three ways: (1) differentiation, (2) cost leadership, and (3) quick response. This means operations managers are called on to deliver goods and services that are (1) better, or at least different, (2) cheaper, and (3) more responsive. Regal Marine, one of the US’s ten largest powerboat manufacturers, achieves its mission — providing luxury performance boats to customers worldwide — using the strategy of differentiation. It differentiates its products through constant innovation, unique features, and high quality. Increasing sales at the Orlando, Florida, family-owned firm suggests that the strategy is working. Differentiation goes beyond physical characteristics to encompass everything about the boat that influences the value that the customers derive from it. Operations managers at Regal assist in

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